Are Extended Car Warranties Worth the Investment?

By Jose Hurtado, Guest Author from Cheap Car Insurance Experts

Most new cars purchased have a standard warranty that covers repair costs in case of malfunctions and damages in a determined period. Standard car warranties for new cars last for an average of three years, but can be extended. Extended car warranties provide longer length of service protection that cover the replacement or repair of most auto issues.

Extended warranty coverage usually depends on the type of plan selected. An extended car warranty does not necessarily mean that all car issues will be covered. Several things should be considered to determine if an extended car warranty is worth the investment for you.

Know What Is Covered

Not all extended car warranties cover all labor and part costs. You may have to pay for some mechanic fees based on the coverage acquired. Other expenses acquired while having a car repair should be considered like auto rental fees, which some extended warranties cover. Check the terms and conditions for the extended car warranty that is offered to know what is covered.

Learn How Claims Are Handled

An extended car warranty is a contract between you and the provider. It is imperative to know if the warranty provider will be able to hold the contract terms. Check for the reputation, license, and history of the warranty provider to know how claims are handled and its related costs. Learn if the extended car warranty allows you to select the repair facility, as an example. For further information, check car warranty providers’ details in websites for the Better Business Bureau and the Federal Trade Commission.

Things To Check On Extended Warranties

Extended warranties vary in the type of coverage provided based on car owners’ specific needs and income. For example, bumper-to-bumper warranties offer the most coverage, but at the most expensive costs. This type of coverage protects against most car repairs except for the usual wear and tear issues.

Deciding how much deductible to pay and the type of extended warranty to purchase are important decisions to consider. Check if an extended warranty has the following features:

1. A Better Business Bureau license.

2. Allow you to select the repair shop.

3. It is renewable.

4. It is transferable.

5. It is covered by a corporate credit card.

Decide If The Extended Warranty Is Needed

Most car manufacturers provide full coverage for up to 36,000 miles or 3 years, whichever comes first, on new car purchases. In addition, many car manufacturers offer extended warranties for specific car components or limited auto warranties for certified vehicles. Decide if you need an extended warranty based on your personal finances and car usage. For example, if you plan to use your car for more than three years or over 12,000 miles per year, an extended plan might be the right choice for you. Depending on the warranty provider, extended car warranties can cover for up to seven years on average.

Consumers must decide if an extended car warranty is worth the investment based on personal finances, cars purchased, and driving habits. Extended car warranties vary in price and protection options. Decide if an extended car warranty will provide you with peace of mind in case needed or common repairs occur.

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